Creating Reference role. (Master or Parent role).

1. Type PCFG in command line
2. Type in the name of the role you want to create.

3. and click  and fill  in the description of the role.

4. Go to the menu tab  and insert all the t-code and report you want in this role.

5. Go to the authorization tab and click  to change the authorizations.

6. Fill in the Org. elements, or you can leave them blank, since reference roles are not assigned to any user. This is not a best practice.

7. Save  and generate  the role. 

Creating a derived role.

• Follow step 1 and 2.
• Fill in the Reference role name.

• Maintain the Org values in authorization tab.

• Save  and generate  the role. 
• Open the reference role (master role) created in step 1 to 7,  and generate all the derived role using this . 
• It will give you the screen below, click generate and you are done.
• You can assign the derived role to users.